MDOT Presentation

8/13/2019 MDOT Presentation

1/19

Michigan Department of Transportation

Michigans Infrastructure

Needs and Funding

2013


2/19

Transportation Is The Backbone of

Michigans Economy

35% of US/Canada trade flows

through Michigan

$520 billion in freight is moved

each year on Michigans

highways, rail and water ports

Trucking accounts for 67% of

all freight tonnage moved in

Michigan

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3/19

Operation of bus transit systems

contribute an estimated $740 million to

the economy each year

Passenger rail is expected to generatebetween $1.0-1.5 billion in net economic

benefit annually

Aviation contributes more than $20billion/year

80% of Michigan tourism is

auto-based - $17.7 billion in total visitor

spending in 2011

Transportation Is The Backbone of

Michigans Economy


4/19

4

Asset Management


5/19

Innovation and Efficiency

MDOT has saved an average of$63M/year since 2009 on efficiencies &

innovations. Some examples include:

$48M: staff reductions & closed facilities

$71M in one-time savings by bonding

and process improvements

$4M/year using electronic signatures for

construction documents $22M in 2012 & 2013 by partnering with

businesses & local governments &

improving maintenance practices

$4M/year in energy savings


6/19

$160

$180

$305

$326

$362

$444

$410

$518

$521

$610

$658

$624

$572

$667

$551

$442

$471

64%

67%

69%

73%

71%

75% 75%

78%

82%

86%

89%

92% 92% 91%91%

89%

87%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

PercentPav

ementinGood&

FairCon

dition

Inves

tmentLevelinMillions

Investment Condition (percent good and fair) 6

Trunkline Pavement Condition has

Peaked


7/19

Transportation Funding

Roads and Bridges

Federal funds: $1 billion

Includes $250 m to local agencies

State motor fuel taxes: $946 million

State registration fees: $876 million

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8/19

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

State Highway & Bridge

Investment History (in millions)

CPI deflated $

PPI deflated $

Actual $

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9/19

$0

$20

$40

$60

$80

$100

$120

$140

$160

2005 2006 2007 2008 2009 2010 2011

UnitPr

ice

Commodity Prices

Excavation, Earth Reinforcement Steel Structural Steel

Hot Mix Asphalt Reinforced Concrete9


10/19

Statewide Average Salt Costs

$20.00

$25.00$30.00

$35.00

$40.00

$45.00

$50.00

$55.00

$60.00

$65.00

Statewide Average Salt CostsAverage Cost Per Ton

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11/19

Time to Act

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12/19

Conditions are Getting Worse

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13/19

Pay Now or Pay Later

$8 B

$17 B

$21 B

$24 B$25 B

$26 B

$3 B

$5 B $6 B$8 B

$10 B$12 B

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

%G

ood/Fair

Trunkline Investment Scenarios

Match All Federal Aid

Match All Federal Aid +$917M/Year

Additional Investment

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14/19

The Cost of Doing Nothing

Costs of an inadequate system $11.6 billion annuallylost time, wasted fuel, crashes, etc.

$3,014 annuallyper driver

$370 per driver per year for auto repairs due to poor roads Safety impacts of an inadequate system

Total crashes in 2011: 284,049

Total cost of crashes : $8.25 billion

Total fatalities: 889

Total injuries: 71,796

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15/19

Benefits of Acting Now

The economic impacts in the first two years:

12,000 jobs each year

$1.598 B in personal income

$2.92 B in Gross State Product

In the next 10 years, this $1.2 billion/year

investment will generate:

Over $10 billion in real personal income

More than $24 billion in Gross State Product

PLUS, better roads & transit, greater efficiency,

improved safety 15


16/19

STATE STATE PROFILE (thousands) STATE INVESTMENT ALLOCATION (thousands)

Total Funding Funding Per

Funding Per Pop. Lane Mile

MICHIGAN 9,834 7,822 97,567,000 257 $1,709,199 $174 $6,651Illinois 12,831 10,789 105,788,000 293 $3,017,527 $235 $10,299

Indiana 6,484 5,698 75,761,000 200 $1,215,322 $187 $6,077

Minnesota 5,304 4,848 56,632,000 284 $1,672,190 $315 $5,888

Ohio 11,537 9,800 111,836,000 262 $2,706,474 $235 $10,330

Wisconsin 5,687 4,968 59,420,000 237 $1,315,897 $231 $5,552

Registered

Vehicles Annual VMTPopulation

Lane

Miles

REGIONAL

COMPARISON

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18/19

Impact Could Be Felt in 2013

If action is swift, work can begin this summer

If not, real progress will be delayed to next summer

Transportation agencies and contractors are eager

to do the work

MDOTs program and lettings are 1/3 less in 2013 than

what they were 4-5 years ago ($650M vs. $930M)

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Questions?

Providing the highest qualityintegrated transportation services for

economic benefit and improved

quality of life. 19

Documents

MDOT Presentation